Credit to our new found B-Guru!

As this being the post rail budget day ...I can scarcely leave mentioning about the new kid on the block ....Mr.Lalu Prasad Yadav.The rail budget clearly drives home the point that this new found B-Guru can be evny for many of the CEOs for he is credited to have turned around IR.A cash surplus of around Rs.10000 crore after paying the dividend liabilities is only too good to ask for from IR when we know that in 2003-04...IR hardly had any surplus.

Now when the FM and the North Block are finding it difficult to come in terms with the rising inflation ....He has applied a soothing balm as the Rail Budget has left foodgrains and fertiliser freight untouched,a move that is expected to soften inflationary pressures.

The battle of LCCs Vs IR resumes with IR cutting the fares of AC I between 3% to 6%.

Highlights of the Rail Budget:
1. An operating ratio of 78% better than the US's only freight -loading train services.
2. Allocation of Rs.5,500 crore towards the depreciation reserve fund.
3. A 16% CAGR growth in the gross traffic receipts in 2006-07.
4.When the Govt. is trying to squueze out whatever money is available with OMCs...the Rail Budget saves @ Rs.75-80 crore for these OMCs because of the cut in freight rates .
5.Lower freight costs for Iron ore,limestone,cement and ammonia.
6.Introduction of triple stack containers,higher axle load trains and wagons with better load carrying capacties.

The flip side :
1.Although on the paper this looks as a good budget but reading the fine print shoes that this is more of a populist budget attempted to assuage the vote bank in view of the state elections.
2. An estimated 13% CAGR growth in gross traffic receipts as compared to 16% growth achieved this year appears to be conservative.
3.Looking at the expenditure that is in pipeline and the estimated lower tariff growth ,capacity addition seems to be the only respite for revenue generation ,which in turn will require more funds.
4.Security and Saefty have always been on the backburner with no clear raodmap defined for the funds allocated for this sector.

All and all this seems to be an attempt to carry on the good work whcih began in early 2005.Politics may be the last refuge of the scoundrels but if politicians decide they can turn around even a sick industry into cash cow.....kudos to this league of legends!